Arvind
05 October 2007 at 14:12

Service Tax and TDS?

Should Service tax be added and TDS be deducted on the following transaction?

Facts;
Instead of each company performing its own marketing activities, one company X in India is pooling their resources together to do what we call as cluster sales and marketing activities. Essentially, all the companies(including Company X) in India would contribute to a cluster fund. The fund is then used to hire sales people to promote group companies in India, and to perform different promotional activities.

Currently, all cluster activities are paid centrally by Comapny X. All cluster sales people are also hired by this X. The costs incurred are then shared by all group companies (including X). At the end of each month, Comapny X would bill the other group companies for their share of the costs.

Questions:

1. Would the above cost sharing arrangement trigger service tax? Should Comapny X add service tax when it's charging out the costs to the group companies? Note there is no profit element being added when Comapny X is charging the costs to group companies. All items are on a cost reimbursement basis.

2. Should TDS be deducted from the amount charged by Company X? If yes, under which section of the Income Tax Act?


Prachi
05 October 2007 at 13:18

excise duty on finished goods

Dear Sir / Ma'am,

Wether excise duty payable on finished goods is included in the closing stock of finished goods.

Regards
Prachi


S.RAVICHANDRAN

Sitting fees received by Directors ( Nominee directors and Whole time directors ) is taxable under the head "Income from other sources " for nominee directors and under "Salary" for Executive / Whole time directors.

Am I correct ?


ajjmk
05 October 2007 at 13:09

articleship

Hi! what are the areas should i focus during my articleship?
in my current firm i have learned only vouching?
what are the other areas i should focus on?
please reply soon

Thank you very much


S.RAVICHANDRAN
05 October 2007 at 12:31

TDS on telephone bills

If we fail to deduct TDS for the monthly telephone bills and pay TDS within the financial year, whether the telephone expenses will be allowed as business expenditure for that financial year ?

Please clarify.


k
05 October 2007 at 11:05

Custom Duty credit

Whether credit of Custom Duty and Addl Duty paid on import of Capital goods which is used to in providing taxable service is available? If so, how much? In return, the details of Input Service Format, Reg no. is ask. So how to show the same in case available as credit?


anita jain
05 October 2007 at 09:21

impotant query

Hello sir,

iam ANITA JAIN doing articleship in Laxminiwas & Co.i wanted to know that whether MBA Correspondence from ICFAI is valid or not...

thanking you


shibu

A Company is having 3 Directors in whole time employment and they draws monthly remuneration. Is there any P.F. Liability for the Company towards this 3 whole time directors?

As per Sch VI the Company shall disclose the managerial remuneration paid to Directors including P.F. if any.

But Directors are not considered as employees.

As per the provisions of the Employees Provident Fund Act the director who is in full time employment of the Company is also an employee.


s.lohani
04 October 2007 at 19:34

Abt promissory notes

Sir,
How do we determine the date in which a bill of exchange is due when the date of issue and date of acceptance is given along with the time. Is the time counted after the date of acceptance or date of being drawn what??
A)1.1.05, X draws bill on y for 3 months. Due date of bill will be ????? How?
B) on 1.8.05 /x draws a bill on Y “FOR 30 days after sight”? Date of acceptance is is 8.8.05. Due date of bill is a)8.9.05 b)10.9 c) 11.9
What is “after sight”?


Prateek Biyani
04 October 2007 at 17:39

Recognised Provident Fund

Can a person which is a member of Recognised Provident Fund (RPF), take loan from it ? And is it possible for him to take loan from it at concessional rate ?
Taking loan from RPF at concessional rate is taxable for all employees or not ?






CCI Pro
Meet our CAclubindia PRO Members

Follow us



Answer Query